Vin Murria given another four weeks to bid for M&C Saatchi

M&C Saatchi announced another extension to the ‘put-up-or-shut-up’ deadline on its proposed sale to AdvancedAdvT, controlled by director Vin Murria, on Thursday.

The AIM-traded advertising agency extended the deadline on 3 March to 1700 BST on 31 March, by which time AdvancedAdcT was required to either announce a firm intention to make an offer, or confirm it would not make an offer.

Under the latest further revised proposal, announced on 3 February, AdvT would offer each M&C Saatchi shareholder 1.939 new AdvT shares and 40p cash for each M&C Saatchi share.

AdvT would also make a mix-and-match facility available, under which M&C Saatchi shareholders would have the opportunity to vary the proportions of AdvT ordinary shares and cash to be received.

AdvT also previously indicated that it would offer an all-share alternative proposal, so that M&C Saatchi shareholders could instead choose to receive 2.347 new AdvT shares for each M&C Saatchi share.

“While the company continues to facilitate access to provide AdvT with the opportunity to make a formal offer to the company's shareholders, no revised proposal has been forthcoming,” the M&C Saatchi board said on Thursday.

“The directors of the company other than Vin Murria reiterate the concerns previously raised in announcements on 7 and 24 January, including the continued undervaluation of the company; the strategy of the enlarged AdvT group and, in particular, the lack of clarity over the deliverability of, and execution risk associated with, their proposed 'digital-led M&A' strategy.”

M&C Saatchi also raised concerns over the impact of the acquisition on culture; how AdvT intended to ensure the retention and appropriate incentivisation of M&C Saatchi's key management and employees; and the valuation of AdvT's ordinary shares.

“As such, the unanimous conclusion of the independent directors continues to be that the further revised proposal undervalues the company and its prospects and would therefore not be recommendable.

“However, the independent directors believe that it is in the best interests of all stakeholders in M&C Saatchi to continue to engage constructively in discussions with AdvT.”

The company said discussions between the parties were ongoing, with the independent directors requesting, and the Takeover Panel consenting to, an extension to the deadline to 1700 BST on 28 April.

That deadline could be further extended by the independent directors, with the consent of the Takeover Panel.

“The independent directors continue to believe strongly in the future prospects of M&C Saatchi.

“The company's robust financial performance in 2021 and the momentum into the start of 2022, as referenced in the trading update on 21 January, positions the company strongly for further growth and provides the independent directors with increasing confidence in the success of its strategy.

“As a result, they remain confident in M&C Saatchi's ability to create material shareholder value.”

At 1601 BST, shares in M&C Saatchi were up 0.3% at 166.5p.